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Black-owned Businesses: Financing Barriers and Solutions

Black-owned businesses face noteworthy challenges when seeking financial help from commercial banks and other traditional financial institutions. These challenges include high-interest rates, a lack of access to business loans and capital, as well as other factors. According to the Small Business Credit Survey, nearly 77% of Black-owned businesses reported poor or fair financial conditions, whereas just 54% of white-owned businesses reported similar problems. Black small company owners were likewise the most likely to have credit difficulties (53%).

Luckily, there are some solutions that can help break down these barriers and make it easier for black business owners to grow their companies. One of these solutions is called microcredit, which allows people who wouldn't usually qualify for traditional loans to borrow money at reasonable interest rates. Another option is peer-to-peer lending, which helps small businesses to get loans from individuals rather than from banks or other lenders. The third option is called crowdfunding, which allows people with large amounts of capital to invest in businesses that they believe in. An example of a crowdfunding site is Kickstarter. These options are great ways for black business owners to get funding without having to sacrifice their stability or equity in the company they're working so hard on building up!

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Written by: Svetlana Sosnova

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